Debt and Balance
What is a balance transfer check?
If you understand balance transfers, you are definitely ahead of the credit card game. Used wisely, balance transfers can help you get out of debt, cheaply and easily.
Some credit cards allow you to do a balance transfer on the application for the new card, or you can do a balance transfer by phone. At creditcardclients.com, we recommend a different approach:
Ask your credit card company for a balance transfer check after opening the account. Then write the check yourself to cover the balance of the old account. This is good for two reasons:
- After the account is open, you know exactly what your credit limit is. You are not guessing how much money you have to work with.
- When you send the check, you’re in control. You know when the check should arrive to pay off the old account and you can make sure it is received before then so that the account is fully paid. If you leave this up to the new credit card issuer, it could take a few weeks (!). In that time, the old account could have more charges added to it and you might not be paying it off in full.
If you receive a balance transfer check, be sure to send it to the old credit card company immediately. Remember, every day your finance charges are calculated using your new low or 0% interest rate (APR) credit card, you are saving money.
See also:
What is a balance transfer?
How do I do a balance transfer?
How is my balance calculated every month?
What are low APR credit cards / 0% APR credit cards?
Last update: 2006-09-25 18:42
Author: BKO
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